Ashok Leyland announced strong Q2 FY’26 results with revenue increasing by 9.3% Y-o-Y to Rs. 9,588 crores. EBITDA reached a record level of Rs. 1,162 crores, up 14.2% Y-o-Y. The company’s positive cash position stands at roughly Rs. 1,000 crores. The Board has recommended an interim dividend of INR 1 per share. The LCV segment and exports showed notable growth. The company anticipates continued growth, driven by new product launches and increased infrastructure activity.
Financial Performance Highlights
Ashok Leyland reported a revenue of Rs. 9,588 crores for Q2 FY’26, a 9.3% increase compared to the previous year. EBITDA reached a record Rs. 1,162 crores, up 14.2% Y-o-Y. PBT reached Rs. 1,043 crores, and PAT was Rs. 771 crores. The EBITDA margin for the quarter stood at 12.1%, representing a 50 basis point increase over Q2 of the prior year.
Segment Performance
The domestic MHCV truck volume for Q2 reached 21,647 units, and the MHCV bus volume was 4,660 units. In the first half of FY’26, Ashok Leyland’s domestic MHCV market share increased to 31%. The LCV domestic volume for Q2 was 17,697 units, a 6.4% increase Y-o-Y. Export volume for Q2 increased by 45% Y-o-Y to 4,784 units.
Strategic Initiatives
Ashok Leyland is expanding its non-diesel portfolio, including light and MHCV electric trucks, as well as electric buses. The company will soon launch a new range of heavy-duty trucks with power ratings of 320 and 360 horsepower. Furthermore, a milestone decision to foray into the battery manufacturing business has also been taken.
Subsidiary Performance
Switch India continues to perform well, selling close to 600 buses and 600 e-LCVs in the first half of FY’26. Switch India achieved both EBITDA and PAT positivity during this period. OHM, the eMaaS subsidiary, operates over 1,100 electric buses. Hinduja Leyland Finance’s standalone AUM reached Rs. 52,635 crores, a 26% increase Y-o-Y.
Outlook and Future Plans
Ashok Leyland anticipates continued growth in the CV industry for both MHCV and LCV segments. The company is focused on delivering profitable growth and achieving a mid-teen EBITDA margin in the mid-term. Network expansion and new product launches are key priorities.
Source: BSE
